The latest numbers on the microchip shortage: S.A. plants bear brunt of cuts

AutoForecast Solutions added 104,792 vehicles to its year-to-date estimate of the number of vehicles automakers have removed from their production schedules because of the microchip shortage.

The jump, one of the largest in recent months, is explained in part by “historical updates” that were added to the tally, which now stands at about 1.85 million vehicles, said Sam Fiorani, AutoForecast Solutions' vice president of global vehicle forecasting.

South American assembly plants accounted for a majority of the newly reported cuts, as the forecasting firm added about 57,000 to its estimate of the number of vehicles axed in the region.

Source: AutoForecast Solutions Inc. autoforecastsolutions.com

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Mercedes-Benz lineup to get electric sedans and crossovers

Mercedes-Benz is reshaping its expansive U.S. product portfolio as it accelerates toward an electric future. 

The automaker aims to become an all-electric brand globally by 2030 but acknowledges that some markets will be slower to flip than others. Given lingering consumer skepticism of electric vehicles and inadequate public charging infrastructure, the U.S. is likely one of those markets. 

Mercedes expects EVs to account for 40 percent of its new-vehicle sales in the U.S. by 2026 and 70 percent by 2030. At a retailer meeting in May, Mercedes teased eight new vehicles, including electric variants of the CLA coupe and GLC crossover. 

Electrification is also coming to Mercedes’ light commercial vehicle business. 

Mercedes will bring a battery-powered Sprinter to the U.S. this year. A luxury midsize passenger van and a range of electric RVs will follow.

eSprinter: A battery-powered U.S.-made version of the Sprinter van a…

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Exclusive: Dealership buy-sell database and analysis

Automotive News has turned its rigorously documented dealership buy-sell reporting into a package of stories and data sets that can't be found anywhere else. And our online, interactive buy-sell database has been redesigned to give subscribers clearer, more detailed information.

We examine the 2022 U.S. dealership buy-sell market and how it compared with 2021, arguably the biggest year for dealership acquisitions in history.

We also take a look at buy-sell activity in 2023 and where the market goes from here.

Sign up for our Done Deals newsletter for a monthly look at the buy-sell market at autonews.com/donedealsemail.

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Tesla camouflages Cybertruck to look like Ford F-150

Tesla appears to be trolling Ford Motor Co. by dressing up a Cybertruck prototype to look like an oddly shaped F-150.

Photos of the wrapped Cybertruck driving or being transported around the San Francisco Bay Area began spreading around the Internet in late July, just as Tesla said it would begin limited production of the electric pickup this year.

The Cybertruck's angular shape makes it all but impossible to fool anyone with the disguise, though the wrap does hide some of the truck's details in the same way more traditional camouflage regularly used by automakers does. The truck has a manufacturer license plate, making clear that Tesla itself added the costume.

Ford CEO Jim Farley recently took a dig at the Cybertruck — which Tesla CEO Elon Musk originally promised would arrive in 2021 — during an interview on CNBC, saying he doesn't consider it a rival of the top-selling F-Series line.

"If he wants to design a Cybert…

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Audi to begin swapping in its EVs

Audi will begin culling internal combustion-powered vehicles from its lineup this year with the sunsetting of its low-volume sport coupes, the TT and R8, while it continues to expand its electric vehicle offerings as the premium brand transitions to an EV-exclusive lineup by 2033.

Audi, part of Volkswagen Group, says it will end development of new gasoline engines in 2026. That means most of its popular combustion vehicles should have at least one more product cycle left before they are replaced with battery-powered alternatives.

To delineate between powertrains, Audi is temporarily altering its alphanumeric model naming system. It will keep the A prefix for sedans and Q for crossovers, but future electric models will adopt even numbers, while combustion models remain with odd numbers. The switch is expected to take place gradually as vehicles are redesigned.

The brand will expand the EVs on its PPE architecture, which will slowly merge with other platf…

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Mercedes preps service department for EV era

Mercedes-Benz is marching into the EV era.

In the U.S., the luxury automaker expects battery-powered vehicles to account for of new-car sales by 2026 and 70 percent by the beginning of the next decade.

But first, Mercedes must prepare its retail network to service those next-generation vehicles. To do that, the brand is investing in technician training.

CCC Intelligent Solutions' 2022 Crash Course report said there will be 100,000 technician job openings over the next decade.

Mercedes has partnered with job training program Job Corps to help build the talent pipeline for its dealers.

The automaker will develop the curriculum, train Job Corps instructors, provide technical support and donate materials, tools and equipment. The training of 16- to 24-year-olds will take place at Job Corps centers in Kentucky, Massachusetts, New Jersey and Utah to start.

Ralf Paul, Mercedes-Benz USA director of custome…

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Highlights from the latest ‘Daily Drive’ podcasts, July 31- Aug. 2

Here are highlights from the latest episodes of 'Daily Drive', Automotive News' weekday podcast, July 31- Aug. 2, hosted by Jamie Butters with Kellen Walker.

“There’s a lot of factors on labor’s side making them more willing to take the risks to go out on strike, which will force the companies back to the table.” — Arthur Wheaton, director of labor studies at Cornell University, on the UAW’s contract negotiations with the Detroit 3

“[We’re bringing] the cost from what used to be tens of thousands of dollars, to now, we’re below $1,000. And hopefully we’ll be even cheaper down the road. And then when that happens, it’s a guarantee that more people will use [our lidar], and it’s a guarantee that more vehicles and people are going to benefit from [that] added safety.” — David Li, CEO of Hesai, which has quickly become one of the world’s largest lidar companies  “As we start commercializing and moving into these other spaces, getting reuse of the same sys…

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Apprentice tech aspires to run his own repair shop

Eight months ago, Justin Dodd was living at a Salvation Army in Louisiana with his two daughters. Today, he is an apprentice automotive service technician at Banner Chevrolet in New Orleans and has a new home of his own.

Dodd, 41, became homeless after resigning from his previous job managing contracted sanitation crews at food processing plants. He left, he said, because he and his daughters, ages 8 and 13, had grown tired of moving to a new city every time one contract ended and a new one started.

Looking for new opportunities, he heard about the apprentice training program from two Urban League of Louisiana representatives. He was initially told no slots were open, but he persisted, and a spot opened up.

Dodd had more work experience than some others in the program, and he leveraged it to advise his classmates.

"It gave me a chance to stand out as a leader," he said. "A lot of these guys were lost and confused. I knew where they were coming f…

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NADA, National Urban League team up to train auto techs

At the NADA Show in Dallas this year, Damian Mills attended a presentation by the National Urban League on a new automotive technician training program it was launching with the car dealer association. Mills immediately decided to take part.

"Once I saw what the program was and the intentions, my team got behind it 100 percent," said Mills, CEO of Mills Automotive Group, which has 29 dealerships in six states.

The pioneering program in Louisiana brings together two organizations — the National Urban League and the National Automobile Dealers Association — and their diverse resources to help alleviate a The hope is to establish a nationwide network of auto technician training apprenticeships.

"We hope the industry can take pilot programs and partnerships like this, use our model and take this across the country," said Will Green, CEO of the Louisiana Automobile Dealers Association.

The National Urban League is an ideal…

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Growing inventory boosts July incentives, led by EV offers

The deals are back in America's new-car showrooms.

Automaker spending on new-vehicle incentives rose sharply in July compared with the year-earlier month, driven by electric vehicle offers, luxury car lease deals and growing inventory across the industry, according to estimates by Motor Intelligence and J.D. Power.

Incentives averaged $2,151 per vehicle last month compared with $1,174 in July 2022, according to Motor Intelligence, with EV startup Lucid Motors leading the way with $12,907 on the Air sedan. J.D. Power estimated July incentives at $1,830 per vehicle compared with $908 in the year-earlier month.

"The reason automakers are spending again is that retail inventory is growing," said Tyson Jominy, vice president of data and analytics at J.D. Power. "Last year it was under 800,000 retail units but this year is over 1.2 million. Production issues are quickly receding into the background, and as production goes up, inventory on the ground will incr…

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CarGurus delays Q2 earnings release; stock price plunges

CarGurus unexpectedly delayed reporting its second-quarter earnings on Thursday, sending the vehicle listing company's stock plunging after it issued a statement that offered few details behind the decision.

Shares of CarGurus slipped 16 percent to close at $18.09 on Friday.

CarGurus, of Cambridge, Mass., had been scheduled to release financial details and hold its quarterly earnings call Thursday after the markets closed. Not long before, it issued a brief statement about the delay.

"CarGurus has not completed its customary quarterly closing and review procedures for the three months ended June 30, 2023," the statement read. "CarGurus will announce the date of the rescheduled earnings release and conference call in a subsequent press release."

A spokesperson told Automotive News on Friday that CarGurus would not comment beyond the issued statement.

Public companies, depending on their size, typically have 40 to 45 days to file earnings d…

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UAW seeks contract with Detroit 3 that would end May 1, 2028

The UAW is seeking a four-year, eight-month contract with the Detroit 3 that would expire on May 1, 2028 — International Workers' Day — according to people familiar with the union’s thinking.

The symbolic date, also known as May Day, celebrates the achievement of the international labor movement and would shift contract negotiations to the industry’s robust spring selling season. It would also change the dynamic of any potential strikes in northern states, taking away the risk of workers freezing on picket lines in cold weather.

A UAW spokesman declined comment.

The proposed pact also includes more than 40 percent raises for hourly workers, including 20 percent raises upon ratification followed by 5 percent raises each September for four years, according to the sources who requested anonymity to discuss the negotiations.

The union is also seeking a reduced workweek, cost-of-living adjustments, pensions, expanded retiree benefits and a jobs bank-…

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